Introduced Senate Bill (S)

Authored by

DIGEST

Supplemental allowance reserve accounts. Establishes supplemental allowance reserve accounts (reserve account) within the legislators' defined benefit plan, the state excise police, gaming agent, gaming control officer, and conservation enforcement officers' retirement plan (EGC), the public employees' retirement fund (PERF), and the pre-1996 and 1996 accounts of the Indiana state teachers' retirement fund (TRF) for the purpose of paying cost of living adjustments, thirteenth checks, and other benefit changes or adjustments granted by the general assembly after June 30, 2017. Requires that, after June 30, 2017, the state lottery commission (commission) distribute each quarter $7.5 million of the surplus revenue from Supplemental allowance reserve accounts. Establishes supplemental allowance reserve accounts (reserve account) within the legislators' defined benefit plan, the state excise police, gaming agent, gaming control officer, and conservation enforcement officers' retirement plan (EGC), the public employees' retirement fund (PERF), and the pre-1996 and 1996 accounts of the Indiana state teachers' retirement fund (TRF) for the purpose of paying cost of living adjustments, thirteenth checks, and other benefit changes or adjustments granted by the general assembly after June 30, 2017. Requires that, after June 30, 2017, the state lottery commission (commission) distribute each quarter $7.5 million of the surplus revenue from the commission's administrative trust fund to Indiana public retirement system (INPRS) for credit to the reserve account of the pre-1996 TRF account. (Current law transfers this amount to the pension stabilization fund.) Requires that, after December 31, 2017, each employer having employees who are members of PERF, the 1996 TRF account, or EGC contribute to the applicable reserve account an amount equal to 1% of the employer's payroll that is attributable to those employees. Provides that all amounts in the reserve account are available to pay cost of living adjustments, thirteenth checks, or other benefit changes or adjustments, but a cost of living adjustment, thirteenth check, or other benefit change or adjustment may be granted by the general assembly: (1) only in an odd-numbered calendar year; and (2) only if the cost of living adjustment, thirteenth check, or other benefit change or adjustment may be funded from the uncommitted balance in the reserve account of the particular fund or plan. Makes changes to the actuarial evaluation and the actuarially determined contribution for each fund or plan to track cost of living adjustments, thirteenth checks, and other benefit changes or adjustments granted after June 30, 2017, by the general assembly separately. Provides that, in each even-numbered calendar year, the INPRS board of trustees shall present to the interim study committee on pension management oversight an actuarial report concerning the status of each reserve account. Appropriates to the INPRS $40,000,000 from the personal services/fringe benefits contingency fund for credit to the PERF reserve account for purposes of paying postretirement benefit adjustments, including cost of living adjustments, thirteenth checks, and other benefit changes or adjustments granted after June 30, 2017, by the general assembly. ... View more